Vitalhub Corp.

2025 second quarter conference call. With me on the call today are Vital Hub CEO Dan Matlow and CFO Brian Gothenburg. After our prepared remarks, we will open up the line to questions from analysts. Please press star 1 or use the raise hand function to indicate that you would like to ask a question. Now, before we begin, I will read our cautionary note regarding forward-looking information. Certain information to be discussed during this call contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, please review the forward-looking statements disclosure in the earnings press release and in our CDAR filings. As well, our commentary today will include adjusted financial measures, which are non IFRS measures. These should be considered as a supplement to and not a substitute for IFRS measures. Reconciliations between the two can be found in our CDAR filings. Now with that, I'll hand the call over to our CFO, Brian Gothenburg, to go over the financial highlights for the quarter. Over to you, Brian.

Good morning, everyone, and thank you for joining the call today. We are pleased to report results for the second quarter of 2025. In the June quarter, we added $1.9 million of organic annual recurring revenue and delivered a 26% adjusted EBITDA margin. In a moment, Dan will provide an update on the business. First, I'll provide a summary of our second quarter financial performance. Our annual recurring revenue was $79.6 million to close the quarter, an increase of 55% over the prior year. Over the previous year, organic growth contributed 14%. In the second quarter, total revenue was $23.9 million, an increase of 47% year over year. Recurring revenue for the term license maintenance and support segment was 19.9 million or 83% of total revenue. This compared to 13 million or 80% in the prior year period. We added a new segment, virtual care term license that relates to the attend anywhere platform acquired with the induction acquisition. Virtual care term license revenue was 300,000 in the quarter For reference, total induction revenue was $500,000 from the date of closing to June 30th, 2025. Perpetual license revenue was $1 million in the quarter, an increase of $22,000 over the prior year period. An increase from $22,000 in the prior year period. Services hardware and other revenue was $2.7 million in the quarter, a decrease from $3.2 million in the prior year period. Our gross margin was 81% of revenue, consistent with the prior year period. Net income before taxes was 2.3 million, up 63% year over year. Adjusted EBITDA for the quarter was 6.3 million, or 26% of revenue, compared to 4.2 million, or 26% in the prior year period. We think this is a strong proxy for cash flow. We closed the quarter with $94 million of cash. After June 30th, we paid about $38.5 million to Funavari and repaid a $15 million bridge loan. All considered, our cash balance is north of $45 million today. We're in a comfortable position to execute on growth and acquisition opportunities as we work to integrate the new acquisitions. And with that, I'd like to hand the call to Dan for an update on the business.

Good morning, everyone. As I always do, I'm just going to do this in a little bit of an informal sense and then very happy to take questions from analysts and try to fill in the gaps that we haven't totally. But yeah, we are... happy with our Q2 results, you know, considering we've had Medcurrent and Strata just a little while ago, and both those organizations came into the organization on a not really on a profitable basis, and there's still work to to go on into those organizations. So the rest of the company definitely came up to fill that scenario in respect to our costs and our basis there. And we're excited about that. We're still working on Strata and hopefully expect to get some more gains from that. Um, again, we, we like to think that the quarter again, just proves the model. And, and I think the model is the most important thing that we're trying to focus on right now is that, uh, you know, we, we like to think it, it, it's a good model. It's doing what we hope it will do. And we continue to execute it in our teams, um, that we acquire in our management team, executive team, understand, uh, what we're trying to do and what we're trying to accomplish. And we're really getting some momentum internally in terms of what that's about. We're busy though. It's really four acquisitions and some significant size over the last six months. And we're continuing to work on those every day that we're doing. uh you know we're we're at the uh the 90 million uh ar level um hopefully you know it's gonna be pretty cool when we can hit that hundred million dollar ar level but it's knocking on the doorstep and uh we continue to work and it just provides that really uh big base of of good revenue that allows us to do what we need to do and if we had to absorb some bumps in the road so we're uh we're excited to to be able to do that organic growth continues to do what it does. We continue to provide it. And our hope is we continue to provide it. Again, as I always say here, we're not a single product-based vendor. We've got a whole bunch of multiple ways to make organic growth. And we got a whole multiple ways of not making organic growth. So predictability is, is, is challenged for, for that. And, but so far so good. We, we continue to do that, but you know, I always caution and stay in our investor meetings. Like, don't get too excited if we do 2.5 million of ar and don't freak out if we do 500 000 of ar and a quarter it's just that type of business to do it uh we like our arr we want we want our growth we want our organic growth but uh we're you know it's always cost first the bottom line first here for us and uh that's sort of how how we work here as an organization The macro levels still seem pretty good for organic growth levels. We're still seeing government activity in segments of our portfolio where they're buying solutions and we're seeing changes in other parts of the market. the portfolio where they're not buying it as much and you know it's the value of having all these different acquisitions is uh when one area is not going the other areas can so we're we continue to move and and continue to uh to do what we're doing um you know there's uh The continuing, you know, in a bunch of different funds, we'll talk a little bit about induction. Induction is a UK based business. It's a challenging acquisitions in terms of it was publicly traded and there was a significant amount of costs. in that business that we felt was not being run correctly. And, and we felt there, if we could take this thing over and we paid a, a pretty good price for the organization, but we have work to do to get that business right-sized and we're in the middle of it right now. So, um, we're working hard at it and we, we, uh, We expect to get a lot of the work done in Q3 and hopefully start right-sizing that thing in Q4 and then a little bit by little bit on the quarters after. But we're not taking our time here and we're moving pretty quick at it to try to get it to the right format that we need. We really did that acquisition for the zesty solution. We didn't have a portal based solutions in that it really that provides the front end to get into healthcare organization. So we have our own electronic health record systems, such as trade and case works and. diamond and twinkle in the UK that can use a front end solution. So Zesty will become that front end solution where we're required to do that. And we also felt there was opportunities to integrate that solution with our in touch and our synopsis and my pathway solution to provide one comprehensive solution to the marketplace where it's needed. So We're excited about that product and what it can do. It has a partnership with Cerner in the UK. So every time Cerner is sold in the UK, Zesty is sold along with it. So it continues to do that business to do it. So we continue to work on that. Attend Anywhere, very different product. We purposely took it out of our ARR numbers because it's not ARR, it's user-based license based on usage. And there's, you know, there's minimum thresholds, but there's no real contractual requirement to... to do, you know, to recur or not recur. So it's usage-based type of product. So we did not want it to muddle what we've called pure SaaS software ARR. And we leave that as a separate segment. So us and the analysts can dissect that on its own basis. And we think it was a smarter thing to do with it. On to Novare. We are really excited about Novare. It was... a bit of a competitive process to get it. And we got it. Um, Navari is being around for a very long time, a very strong brand in Canada, um, based out of Kingston and it's done some good work and it has started to make headway in the UK and Australia. So, uh, we think we can take it to the next step in, in UK and so forth. Uh, there's a lot of, um, buzz in the Canadian marketplace for the referral management-based system and connecting organizations together. And Navarri is right in the middle of that for certain pathways, primarily the surgical and what they call central intake, which is really mental health and imaging referrals. And we think it will provide a significant amount of the organizations ARR going into, you know, 26 and 27 and onward of our business. So we're looking forward to that business and working together. We've known each other for a long time and We're excited to have John and John Sinclair and the team as part of Vital Hub. It's really a good fit and we're excited to do that. Where are we sitting now? What do we do now? We think we're in a pretty good state. We're generating good cash. We're north of 45 million of cash in the account at this stage. So we're still coming out of here. We're generating cash. there still are other acquisitions that are coming at us. And we're being a teeny bit more careful trying to get these guys digested a little bit. But if they're a little on the smaller side or if it's something that we just have to do because it makes sense, we're going to do it. So we continue to move along in all those directions. And that's it for me today. I'd be happy to answer some questions.

Great. Thank you, Dan. We'll now open up the line to questions from analysts. Again, please press star one or use the raise hand function if you would like to ask a question. Today's first question comes from Gavin Fairweather of Coremark Securities. Gavin, your line is open.

Oh, hey, good morning. And thanks for taking my questions. Maybe just to start at the funding level, the NHS just announced a massive tech budget increase recently. Dan, maybe you can just touch on your read on their priorities and which of your solutions are well-suited to benefit from that increased spending.

Yeah, it's interesting in the NHS. There's money floating around, but they're in a bit of flux as well, at least in the ICB level, which is where we sell some of our product sets to do it. The product sets that I actually think will get money from this stuff will be the InTouch, Zesty, MyPathway, Synopsys type of product. There's PEP funding that they call it. I forget what the acronym is that is being released. And it's a significant amount of money in our area that our teams are using. are currently going after in those areas. So we're hoping to get a bunch of that. That money also fits into the referral area. So we do believe, you know, we know we've got a half a dozen strategy implementations that are there. We think Navarre is close on its first deal in the UK and our teams are getting up to speed pretty actively on the referral based project. So we're we're definitely trying to pivot a little bit toward those things in uh in the uk but yeah there's always funding roaming around in the uk in different areas and it's just trying to find it and get part of it um yeah we'll go after it we'll see what happens with it um and go from there thanks for that and then secondly on avaria and induction i know you do diligence these things like crazy uh from an external perspective but now that you own them i'm curious for what's

surprised you about the organizations or products now that you're kind of under the hood?

Navari, what was the other one, Gavin?

Induction.

Navari, we're literally, I don't know, four or five weeks into it, right? So we're going there. Induction has a really... a lot of really good people there that some got some really good experience and, and have done some things. It's just too many of them. Um, so we're, we're excited about some of the, the talent that we're, we're potentially going to get there, um, you know, from that organization, um, especially on the technology side, uh, to do that. So there's some good people there and, and we think they're, they're going to help us in a lot of different areas. And, uh, Really good methodologies, good ideas, good people. So it's a bigger scale organization. I think they all know how to run properly. That's a bit pleasure to do. Yeah, it's the same thing with Novare. Yeah, it's a company that we've known for a long time and we've evaluated over the years and they purposely have made commitments to process and change and putting in proper metrics and so forth to monitor its business. So pretty good structure and really run, you know, pretty well, probably the best run company that exists. we've acquired so far so um yeah that's pretty cool when you get something that big and they already understand how to run properly and um and we can get our stuff uh we can get joined at the hips and and they actually got some solutions i think that will overall help us um as well so yeah it's You know, it's it's pretty good when you walk into a company and, you know, our integration team goes, hey, guys, we've got a problem. They actually do this better than us. We can't take them backwards. So, you know, and we think we do pretty good on their stuff and not all of their stuff, but some of their stuff. So it's a really good run company and we think it's going to be really helpful for us.

That's great. And then lastly for me, just sticking on the Navarro theme, given their pretty sizable install base in Canada and the sales team that they have there, do you think that can end up being a bit of a channel for your UK products where you've got a much bigger install base in Canada just to help accelerate the adoption in Canada of those UK products?

Yeah, good question, Gav. Well, we do think they are. They have... a couple of salespeople there, like it, Canada's not a big healthcare IT market, you know? Um, and you know, if you've got to go there, you know, there's a couple of more than a handful, but there, there's, there's not that many like highly experienced sales reps, you know, that, that are running around here unless they're, you know, working for the, the Cerner's and, and so forth of those world. Um, but they have, uh, They have a couple of salespeople that I would regard as like, you know, blue chip, a wine salespeople. They've been doing this for both of them for, I think, north of 20 years in this market, they got great connections. And I think they'll do, I think our coverage along with our Canadian team is just going to take us to a little bit of a higher level in Canada. So that's a little bit exciting.

Thanks so much and congrats on the strong numbers.

Thanks. Thanks, Gavin. The next question comes from Doug Taylor of Canaccord Genuity. Doug, your line is open.

Thank you. Good morning. I wanted to ask another couple of questions about induction health and as it relates to how we should model it in here. They were, I think, doing about $20 million in trailing revenue. You've added only $4 million to the ARR, which is just the Zesty, and I think you explained well your rationale for doing that. So this new line for Attend Anywhere, can you help us with the modeling parameters around that, how we should think about the size of that line initially for a full quarter, seasonality, maybe some churn, if that's what we should anticipate and bake into our model? Sure.

Yeah, it's about a little less than 4.5 million pounds, and it variates. It could go lower than that, depending on quarter-to-quarter, Doug, just on usage. But it's probably a number to use there for it in terms of where it's starting for it. That's an annual number, right? That's an annual number, Doug. Churn, they have gone through pricing changes and usage changes to remain competitive with other organizations to do that. There could be churn in this product. We're prepared for churn in this product. And it's one of the reasons why the price point was the price point. for that organization so we're prepared for it but we also think it's going to generate some significant cash for us and we're not so sure it's going to turn you know very fast either if it if it does at all but we're suspicious of only because of the zooms and the and the Teams type of businesses, there are definitely a lot of features in Attend Anywhere that are clinically based. And I think the users that like it, I think they've done a really good design of that application. But it's just, you know, you've got IT groups that are looking for a uniform base and want to get Zoom and other stuff in there. So it could come under pressure, but it might not. And if it doesn't, you know, we we've modeled in that there will be a little bit. I don't know how to look at it, you know, in a good, in a, in a productive way, or at least going to sit on, on, on, on this call and give that information to you. Cause we actually don't really know ourselves what that will happen. I know that we're we're, the way that we're planning to structure it and do it we're going to make some really good money at it uh while we have it and maybe for a long time so um you know that's how we're looking at that asset okay so to to use the you know 4.5 million pounds annually as and just you know model that flat line is not a bad place to start with pretty high margins

Yeah, I think it is. Well, not margins yet. Well, I'll ask more about margins in a minute, but just to close that thought, I mean, there's the balance of the, you know, there's a pretty big step up in services revenue that came with induction as well and strata, if I'm not mistaken, that would form the balance of the sort of 10 million you've talked about to 20. Yeah.

Yeah, they have in the past have done what I'll call one-off services projects that had nothing to do with their technology. So we don't think the services revenue is going to, at least under our trillage, we're not going to do that work. We're going to do services work to our product. We're not a software company, not a services company. So that could be a little bit different scenario. as it goes forward, but there still is services on every single zesty implementation that happens that is significant.

So it'll step up, just maybe not the full amount that we've seen historically. Appreciate that. You mentioned margins, so maybe I'll ask a question. You've got Navarri in the fold, and despite everything you said about how well it has been run historically, I believe you've also identified R&D as a function where you know, there's a lot of promise in terms of synergizing with Vital Hub's operating system. You know, I know it's been only a month, but maybe you can talk about, you know, near and medium-term integration milestones, as I'm sure you've begun the work there and sort of, you know, map us, you know, the path back to 25% EBITDA margins that we're now seeing from Vital Hub, you know, as both of those acquisitions are folded in here. It's a question I get a lot from investors.

Yeah, you know, I think... I don't think Navarre is going to be one of those organizations that's given us, you know, 25% EBITDA overnight here. I think we'll get it. We'll get it profitable and we'll look at it. And then the real test is how fast that goes. how fast that revenue comes in that we see coming at them, um, pretty close, right? Is it going to be, you know, how, how soon in 26 is, is that stuff going to start coming in and start getting onto the books? Right. So, um, if all that revenue is coming in, they're going to need, uh, they're going to need people to implement it and do stuff. But at the same time, um, we believe there's a program for adding people. We already have adding people in Sri Lanka and doing work for them. They have used a group in Colombia, so they're prepared to use offshore development group. And so we are moving pretty quickly to try to help that out and, you know, and see what we need to do from other parts of the organization to help them move

deliver which we think will be a significant amount of a business there and so induction you know maybe a little quicker than that based on what you're saying and the work you're doing yeah yeah okay yeah and uh so maybe the last question for me then um you've been pretty consistent you know remarkably so in delivering double digit ar growth you know and i understand everything you said about the lumpiness quarter to quarter you you know alluded to in your prepared remarks but I guess I just want to gauge, you know, your confidence in continuing to do so on the recurring revenue side as you scale into $100 million in ARR. I ask this because I think if I look at, you know, consensus expectations, it shows a bit of a deceleration into, you know, sort of the high single digits by my math. And I just want to explore with you whether, you know, the pipeline you're talking about with Navarro and other, you know, supports continuing to punch it at a double digit clip here.

Um, you know, it's, it's so hard, Doug, and I just, in the internal part of me, always wants to be warning our group on the cautious part of that side of our, our business, like we got, you know, we got some outlier implementations of software that, you know, a lot of these companies, like, remember what we're buying, right? They're owner operated businesses that have done it right. And you know, before they get into like their core business, like they did it at all and they pivot a bunch of times. And so we got outlier solutions that are out there that we know at some point are going to turn out of their world. We've been pretty, although, you know, healthcare is pretty resilient and they continue to keep going, but like, When we buy these things, we go, okay, let's model that that's going to stick around for two years and it's still here like six years later and no indications of it. But there are pieces of software roaming around here that we think are going to turn throughout this process. And then you have one light quarter of... of no sales and then boom all of a sudden you're like in this like single you know low volume type of business and and boom it grows and then other quarters like there's like a fun there's a funding for uh coming in from some area and you've got to get this by a certain date and just boom arr grows it grows like crazy right so it it just could be all over the map right um we're excited about what novari um can bring um but you know that could get offset by some slowness of no funding for other type of solutions that we might have had a couple years ago so I think our comfort level still sits in this like, you know, 10 to 15 area to do that. We've always said, you know, over time as that denominator grows, the AR is going to be harder and it's like, we could be going to like to this, you know, 12, 28, 10, 30 type of business. I still believe that's probably where it's going as this type of business, it just gets harder to get that amount of deals through there. So yeah, that's where the, the challenge comes in us projecting that um to everybody in a pretty effective way but you know i've been saying that for a while historically we've been doing what we do and i uh you know there's no indication that says that should change but uh i do want everyone always to be prepared for like don't get too excited when it's too high and don't get crazy if like we you know we crapped we we just have a crappy quarter because the model is the model and it's not going to change anything

Yeah, you've been consistent on that. Okay, thank you. I'll pass the line.

Great. Thanks, Doug. For all questions going forward, we ask that you limit yourself to two questions per analyst. We'll try to get everyone in the queue within the hour. The next question today comes from John Hsiao of National Bank. John, your line is open.

Good morning. Thanks for taking my question. It looks like you're

perpetual license revenue is very strong this quarter i know it's all time related but any particular reasons for such a timing and how should we model this line going forward john if you can tell me how to model it we'll we'll all be good um uh we we had two products that have a perpetual component to it um one is in touch and the other one is caseworks and and um Both of them provide revenue on a pretty consistent basis. Just sometimes in touch, we'll get bigger deals there. And then it's a question of when do we go live and actually represent the delivery of it. But we do have, you know, we do have a fair amount in our InTouch funnel. And I think they were very, you know, if you're going a couple of years back, a year and a half back before you were involved, InTouch was a pretty significant part of our revenue stream. And it maybe tailed off a little bit over the last year and a half. But we are seeing a little bit of resurgence in activity of that stuff. So, yeah, I do think there will be some perpetual growth. sales over the next two, three quarters for sure.

That's great, Carlos. And my other question is, you added multiple pathways in the past 18 to 24 months. So any other particular pathway you think that's missing at this point that could be complemented by future acquisitions?

Yeah, I still think there's stuff around the emergency room that would be nice to do. There's the ambulance room where there's software in those rooms. There's so many of them. Like healthcare, just these little niche solutions that go provide um automation and and so forth into that doing stuff so we continue to look at uh at all different areas inside the hospital itself um bed utilization and moving people around the beds um to to do that so there's still you know there's still significant uh amounts of things to do here thank you apostoline

Thanks, John. Your next question comes from David Kwan of TD Securities. David, your line is open.

Thanks, Christian. So, Dan, you've completed three of the largest deals to date within the last year. Can you maybe talk about what you've learned from kind of going through the sale process and then post-close integrating these businesses? Has there been any new challenges that you've come across that you hadn't seen with the smaller token acquisitions you've done and how did you deal with them?

Yeah, I think the only one that I think that's any different would be Induction. It was a publicly traded company. It had a significant amount of revenue and it wasn't making money. And we looked at that and just said, this is just ridiculous. This is... this you know we think we can get this thing making some money so we uh you know we're moving quickly on that one and we have to move quickly to to get it uh right size or it's just going to hit our our profile right and uh yeah i think the you know the you go you know we're hitting 20 per 6 adjusted and it took a lot of work for us to get to that 26 27 you know 28 level of adjusted and we like it up there and yeah, we're about, we're about to, you know, go into Q3 where that profile is going to go down because of the acquisitions, because they're right sizing. And it's just like, guys, this isn't making me feel very comfortable. Like how fast are we going to get these companies here? Let's go. Right. So I think we, you know, we, we never had the urgency to on a speed perspective that we've had before. And we're, we're off and running because we have to be.

No, that's helpful, Dan. Is there anything that you could take maybe from the Strata acquisition now that you've had a few quarters with it that you can leverage for induction and or Navari?

On Navari and Strata, Well, we'll definitely, you know, we're, we're, we're already off and running on that. They'll be working together much more closely as it are, you know, to, to stuff, right. There's both of them are strong in their own way and both of them are pretty strong in their pathways, but yeah, We also got resources that can be because we got the domain experience and we got the stuff that they can help each other out in those respects. I think the two are nice together. They've known each other for a while. They're professionals. I think we're excited to have both those groups together.

That's great. Thank you.

The next question comes from Michael Freeman of Raymond James. Michael, your line is open.

Hey, good morning, guys. Congratulations on the strong quarter and all the action recently. I wonder if you could just give us an overview of the major booking activity from the quarter, and then I have a follow-up.

What do you mean by that? Where we got our revenue from?

Exactly, yeah, sources of business.

It was really just diversified. I think that we got contributions from all levels. We consistently get contributions from that Oriel project that adds users on a regular basis. And that was there. But I think there was really no one area that stuck out, Michael, in terms of where we got our revenue from. All right, that's helpful.

I wonder if you could give us a sense of some software products that have a major base of business or installed base in one geography, for instance, the UK, that might be finding some traction crossing over into your other geographies of focus, for instance, Canada.

Say that again? Sorry, I just sort of missed it. What other products are going back and forth or which ones are? Exactly.

Ones that have a strong installed base in one geography that is starting to connect in another.

Yeah. I think induction is something that's strong in the UK that we've brought over to Canada. That's been something that's been brought over. Zesty will be brought over to Canada very quickly because we're going to put it on the front end of our stuff soon. And Strata was already in both countries, so it's there. Navari is already knocking on the door that it's there. And Medcurrent is sold in both countries pretty consistently with the team. So that goes back and forth a fair bit. Those would be the main ones at this stage. Okay.

All right. I'm just going to squeeze in one more question. You've discussed, you've talked about Novari as a strategic asset. I wonder if you could dig in a little bit more on the strategic nature of that acquisition.

Sure. They got a footprint right across Canada, which is going to... When you look at our Canadian business, our big business in Canada has been the TREED electronic record-based system. Yes, we've diddy-daddled with... you know, a little bit of the other products roaming around. But, you know, our business is about cross-selling into accounts, right? So Strata got us a definitely good base in Canada, but now we get Navari into here as well. So our footprint, you know, always used to go and say, hey, our footprint in Canada, The UK was in every single implementation. We can pretty much start saying that about Canada now as well. We got presence in most of Canada with all of our solutions right now. So that just creates a good avenue for cross selling. our products into, into that, those bases and so forth. Right. So we, you know, we buy technology, we, we buy good people and we're getting a lot of really good people with Navari and we buy customers so that we can cross sell. So, and we buy, you know, we buy, you know, customers come with partnerships that they have in place. Navari has a very good, very, very, very strong customer relationship with Cerner in Canada and, and, We got a very, very good relationship with Cerner in the UK. So, you know, hopefully, can we leverage these partnerships a little bit better off multiple more products and multiple more things, right? So those are just all things that come with each acquisitions. There's always intangibles that we see as operators. But yeah, Novara brings just a lot of those intangibles.

Thank you, Dan. I'll pass it on.

Great. Thanks, Mike. The next question comes from Daniel Rosenberg, the Paradigm Capital. Daniel, your line is open.

Good morning. My first question was around the Navari acquisition. You had mentioned that it was a competitive process. I was wondering if you could speak to some of the factors that you thought drove you to winning it outside of price.

Yeah. Yeah, I say this everywhere I go is we're healthcare people, right? We go into an acquisition and you go into a meeting and I go in with my team and it's pretty obvious. We start talking healthcare. We start talking healthcare problems. We start talking IT problems. We start talking trends. We start talking ideas of how stuff fits together and where we do. And we can go out for... a drink and just talk for hours of, you know, what do we got to do? How does this go? How can we position this? And where are you seeing? And what are we seeing? And that's a lot of a different conversation than if a banker walks in and says, Oh, what's your ARR? What's your margin on this? And where do you go? And yeah, sure. Money counts, numbers count. And I know my numbers and Brian knows his numbers. And I think we all, everybody on this phone, on the analyst perspective knows our numbers, but there's really the intangibles of, And it's something that I care for deeply is like, how are we going to get these health systems better? And how are what can we do to add some impact to actually make change so that we can do things better and we can help them save lives? And that's conversations that we have. And, you know, and then it's just a case of getting to the numbers. Right. So, yeah. John and his team at the core of what it is, they really believe in their business and they really believe they're doing good work and they're passionate about what they do. i appreciate that and i appreciate that for everything that we buy like we're trying to actually add some value um to what we do and and that value comes out in our ability to sell and and solve problems right so um yeah i think that's what it is like we're just not about numbers here we got like numbers we want numbers and we reason we get numbers is because we're pretty passionate about what we do so um you know i think that's where it goes with people like uh john and the navarre guys and These guys put a lot of work into building these things out of an office in Kingston General Hospital, and I think they wanted this to come into a good home where it's going to take it to the next level and bring it. I think that's what we're all about.

for that and uh certainly resonates with uh anybody who's gone through the healthcare system uh for my second question um i just was curious you had mentioned some shifts and some products perform well and some uh some may have a slow quarter i was wondering as you think about the product portfolio what levers you have to shift resources across products and And how do you think about that as some products go into more of a driver phase? Any commentary there?

Yeah, we, about two years ago, we decided to, as we got each one of these companies, R&D used to sit in a separate room. separate technology group and they just used to build their own products and doing their own things. And they all had their own different methodologies and they're different people. And all we would do is just sort of, oh, hang on, you got too many people or not enough people. And we'd add people to the lab and they would work out as a group. We changed that a couple of years ago and delivery and development as a corporate function. So we drive all the development groups off of a group and depending where we need resources, we have the ability to move them around as needed now. So it makes a big difference and they all work the same way in the same methodologies on the same tools. Our services groups work all the same way. So it allows us to effectively move people as needed.

Great. I appreciate you taking my questions. Thank you.

Great. Thanks, Daniel. There are no further questions at this time. So, Dan, I'll hand the call back to yourself for any closing remarks you may have.

Yeah, nothing really to add. We're continuing to be excited. It's just another chapter, another quarter. We're on to the next one. But yeah, we're in a really good position. We're hitting that. We're getting close to that hundred million of AR and the model continues to, the model continues to grow and we got our work. We got to work ahead of us to get ourselves back into that, you know, 26, 27% adjusted EBITDA percentage. And that's what we're focused on right now.

That's great. Thanks Dan. And thanks everyone for joining today. That concludes today's conference call. Thank you. Bye-bye.